State board OKs Vibra’s purchase of Kindred Hospital

Kindred Hospital Springfield could become Vibra Hospital of Springfield as soon as the end of the month.

Dean Olsen

Kindred Hospital Springfield could become Vibra Hospital of Springfield as soon as the end of the month.

The Illinois Health Facilities and Services Review Board voted unanimously Tuesday to approve the $10.5 million purchase of the long-term acute-care hospital by Vibra Healthcare of Mechanicsburg, Pa.

Officials from Kindred Healthcare, a publicly traded company based in Louisville, Ky., have said they hope to complete the sale of the 50-bed facility at 701 N. Walnut St. by Aug. 31.

The sale, which had no opposition, is part of a $187 million, multi-state deal in which Vibra is buying from Kindred 15 long-term acute-care hospitals, one acute rehabilitation facility and a nursing home.

Vibra spokesman Roger Breed said there are no plans to change pay or employment levels at the Springfield site, which employs about 100 people.

Also approved 7-0 by the health facilities board during its meeting in Normal was Vibra’s $500,000 acquisition of Kindred’s 51 percent ownership interest in a similar facility in Peoria, Greater Peoria Specialty Hospital. The remaining 49 percent interest will continue to be owned by a Peoria hospital, Unity Point Health-Methodist.

Kindred built the three-story, 40,000-square-foot Kindred Hospital Springfield for $25 million and opened it in December 2010 a few blocks west of Memorial Medical Center.

Kindred wouldn’t say why it was selling the Illinois properties to privately held Vibra. A statement from Kindred in May said, without elaboration, that it had signed a “definitive agreement to sell 17 non-strategic facilities” to Vibra.

Vibra, in documents it filed with the state planning board, said the for-profit Springfield hospital posted $11.2 million in net patient-care revenue in 2012. Vibra also noted that Kindred’s Springfield and Peoria hospitals had “negative EBITDA.” “EBITDA” stands for earnings before interest, taxes, depreciation and amortization.

As a long-term acute-care hospital, the Springfield facility cares for patients with complex medical conditions who need to stay, on average, a month or longer.

Many LTAC patients have breathing problems and need to be on respirators. They may be receiving intravenous antibiotics and have multiple health problems, including heart conditions, kidney failure and slow-healing wounds.

LTAC patients often are transferred from traditional acute-care hospitals such as Memorial and St. John’s Hospital. These patients often have the cost of their care paid by Medicare because of their age or disabling conditions.

Dean Olsen can be reached at 788-1543. Follow him at twitter.com/DeanOlsenSJR.

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